A Trademark Assignment is a legal document which is created between two entities when the former wants to transfer, a written word, logo, phrase, or character to the later in exchange for funds or for other purposes. This document is a legal proof of a transaction taking place and is created in order to transfer the rights of the trademark from the first owner to the future or the second owner. The first party who is the original owner of the trademark is known as the Assignor within the contents of the contract and the second party or the future owner is known as the Assignee.
The contracts outline all the finer details of the transaction and mentions the terms and conditions of the sale along with other important details. Some of the most important key phrases in this contract are the Assignor and the Assignee, Effective Date, Warranties, Signatures etc.
When Do You Need a Trademark Assignment?
The most common use of this agreement can be found when there is a transfer of the rights of a previously owned trademark from one owner to the other. Example scenarios can be when the current owner is shutting down shop or when they are being acquired or they are being merged with another organization.
Inclusions in Trademark Assignment
- Parties Involved: In this legal agreement there are usually two parties involved; the first being the current owner of the trademark rights and the second being the future owner of the trademark rights. They are simultaneously known as the Assignor and the Assignee within the context of the legal document.
- Effective Dates: The contract outlines the dates of significance in this transaction, for example on which date the transfer of rights will happen and also by when the entire transaction needs to be settled or closed.
- Where does it Apply: This agreement is legally binding within the boundaries of the state, city or county where it was originally issued.
How to Draft a Trademark Assignment
Kindly follow the below mentioned steps to draw a Trademark Assignment:
- Arrange a meeting between both the stakeholders and discuss upon the terms and conditions of the sale or transfer. Discuss upon the amount of funds that will be issued on behalf of this sale and also other finer details that need to be addressed.
- Once the terms and conditions and all other finer details have been discussed, reach out to a legal term and ask them to draft a Trademark Assignment for your organization.
- Cross verify and check all the details with both organizations, after which collect the required signatures from both the stakeholders.
Benefits of Trademark Assignment
The benefits of having a Trademark Assignment are many. Mentioned below are the most significant ones.
Pros of having a Trademark Assignment
- This agreement is a legal proof of a transaction happening between both the organizations and therefore is legally admissible in a courthouse if there ever be a need.
- This contract protects the parties from a possible chance of fraud, during, before or after the transaction.
Cons of not having a Trademark Assignment
- In the absence of this legal agreement, both parties stand to lose if the matter is ever taken in court due to lapse in terms or in specifications mentioned.
Key Terms & Clauses in a Trademark Assignment
- Disclaimers: Both the parties involved in this transaction need to issue certain disclaimers to each other pertaining to the trademark that is being transferred. This section of the contract outlines the details of the same.
- Notices: Certain notices need to be issued to both the organizations about when the transfer will happen and other details. This section contains the details of the same.
- Remedies: In the event of a default in payment or lapse in terms and conditions, either or both the party needs to be issued remedies and the details of the same are mentioned in this section.
- Obligations: Both the parties have certain obligations that need to be fulfilled in order for this transaction to go smoothly and this section outlines the same.
Sample Draft of Trademark Assignment
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